Enbridge said it will acquire Blackstone-owned Tallgrass Energy's crude oil business for $2.55 billion in cash, expanding its U.S. liquids pipeline network by buying a majority stake in the Pony Express Pipeline and other assets.
The Canadian pipeline operator said the deal would strengthen its presence in key U.S. crude-producing regions, including the Bakken, Powder River and Denver-Julesburg basins, while creating operational synergies with its existing Express-Platte pipeline system.
Enbridge will acquire a 75% interest in the Pony Express Pipeline, a 1,050-mile (1,690-km), 460,000-barrel-per-day (bpd) crude system that links production in the Rockies to the Cushing, Oklahoma, storage hub and provides access to about 500,000 bpd of refining capacity.
U.S. President Donald Trump had issued several pipeline permits in April, including one for construction of a new pipeline, to facilitate the transportation of crude oil and petroleum products between the U.S. and Canada.
The acquisition, expected to close later in 2026, subject to regulatory clearance, also includes a 51% stake in the Powder River Gateway pipeline system, nearly 8.4 million barrels of storage across nine crude terminals connected to Pony Express, and the crude marketing business Stanchion Energy.
Enbridge said the acquisition is expected to be accretive to distributable cash flow per share in the first full year of ownership, while leaving its 2026 financial guidance unchanged.
The company added that it plans to partially fund the acquisition through an equity offering, alongside its August 26 purchase of Salt Creek Midstream's crude gathering business.
Executives said on a conference call that Enbridge was taking a conservative approach to funding the acquisitions to preserve capacity for future growth projects, while maintaining flexibility through asset sales, partnership structures and other financing options.
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Enbridge said its C$41 billion ($29.70 billion) secured growth backlog will be financed through an average annual growth capital investment capacity of C$10 billion to C$11 billion.
